SB 599: Local Government Budgets and Audits; regulation of local governments in fiscal distress; provide

Georgia currently has no formal statewide process for spotting local governments sliding into financial trouble before it becomes a crisis. This bill adds a new Code section (O.C.G.A. § 36-81-12) creating a 'financial health warning program' run by the state auditor, which would use financial ratios, missed audit deadlines, and other data to flag counties, cities, and other local governments at risk of fiscal distress. Once flagged, a local government would first go through a review and, if needed, a state assistance or targeted intervention plan approved by the Governor. Local officials would be required to cooperate and share records. If a local government still can't or won't fix its finances, the Department of Community Affairs could recommend the Governor appoint an emergency fiscal manager who would take over budget, payroll, debt, and contract approval authority until benchmarks in a remediation plan are met. The bill also directs the Department of Administrative Services to build a statewide roster of qualified turnaround specialists for use in these situations.

• Creates a state auditor-run financial health warning program that annually screens local governments for signs of fiscal distress using financial data and audit reports.
• Automatically treats a local government's failure to file its annual audit within 18 months as a preliminary sign of fiscal distress, triggering state review.
• Establishes a process for the Governor, with input from legislative leaders, to approve a state assistance, oversight, or targeted intervention plan for a distressed local government.
• Requires local officials and employees to fully cooperate with state-appointed staff, including giving them access to financial records and systems.
• Authorizes the Department of Community Affairs to recommend, and the Governor to appoint, an emergency fiscal manager who can take over budget, payroll, debt, and contract decisions for a local government that won't or can't fix its finances.
• Directs the Department of Administrative Services to build a statewide roster of turnaround specialists that the state can hire on an expedited basis for these interventions.

Counties, municipalities, and other local governing authorities in Georgia, along with their elected officials, chief executives, and employees. It also involves the state auditor, the Department of Community Affairs, the Department of Administrative Services, the Governor, and legislative leaders who oversee the process.

Local governments that fall behind on audits, run structural deficits, or can't pay their bills could face escalating state involvement, up to losing day-to-day control over budgets and contracts to a state-appointed manager. Residents of those communities could see changes in local spending decisions driven by state officials rather than elected local leaders.

• Subsection (a) defines key terms including 'fiscal distress,' 'emergency fiscal manager,' 'remediation plan,' and 'targeted intervention.'
• Subsection (b) requires the state auditor to develop and publish specific data points, financial ratios, and thresholds used to screen local governments for distress.
• Subsection (c)(3) deems a local government in preliminary fiscal distress if it hasn't filed its annual audited financial report within 18 months of its fiscal year end.
• Subsection (d) sets out the state auditor's review process, including document requests and required local government responses within reasonable timeframes.
• Subsection (e) requires the Governor to consult legislative leaders before approving a state assistance, oversight, or intervention plan, and allows emergency procurement of staff in urgent cases.
• Subsection (h) authorizes the Department of Community Affairs to recommend, and the Governor to appoint, an emergency fiscal manager with authority over budgets, payroll, debt, and contracts until remediation benchmarks are met.
• Subsection (i) directs the Department of Administrative Services to create a statewide roster of turnaround specialists for use in these interventions.

1. 2026-02-26Senate Read and Referred (Senado)
2. 2026-02-25Senate Hopper (Senado)

• Jason Anavitarte (R, SD-031)Patrocinador principal
• Steve Gooch (R, SD-051)
• Clint Dixon (R, SD-045)
• Timothy Bearden (R, SD-030)

• local government finance
• fiscal distress
• state oversight
• municipal audits
• county budgets